Exhibit
No.
|
Description
|
|
Press Release of Iris Energy Limited, dated February 15, 2024
|
||
Management Presentation, dated February 15, 2024
|
||
Unaudited Interim Consolidated Financial Statements for the Three and Six Months ended December 31, 2023
|
||
Management’s Discussion and Analysis of Financial Condition and Results of Operations for the Three and Six Months ended December 31, 2023
|
||
101
|
The following materials from this Report are formatted in Inline XBRL (eXtensible Business Reporting Language): (i) Unaudited interim consolidated statements of profit or loss and other comprehensive income, (ii) Unaudited interim
consolidated statements of financial position, (iii) Unaudited interim consolidated statements of changes in equity, (iv) Unaudited interim consolidated statements of cash flows and (v) Notes to the unaudited interim consolidated
statements
|
|
104
|
Cover Page Interactive Data File – The cover page from this Report on Form 6-K is formatted in iXBRL (included as Exhibit 101)
|
|
Iris Energy Limited
|
||
Date: February 15, 2024 | ||
By: | /s/ Daniel Roberts | |
Daniel Roberts
|
||
Co-Chief Executive Officer and Director
|
|
• |
Bitcoin mining revenue of $42.0 million, as compared to $34.4 million in the first quarter of fiscal year 2024, primarily driven by an increase in average Bitcoin price realized
|
|
• |
Mined 1,144 Bitcoin, as compared to 1,223 Bitcoin in the first quarter of our fiscal year 2024. Lower Bitcoin production was primarily driven by higher global hashrate rate during the period
|
|
• |
Electricity costs of $16.6 million, as compared to $16.4 million in the first quarter of our fiscal year 2024, primarily driven by a consistent average operating hashrate of 5.6 EH/s across the periods1
|
|
• |
Site and other costs of $11.9m, as compared to $11.4m in the first quarter of fiscal year 20242
|
|
• |
Net loss after income tax of $(5.2) million, as compared to a $(5.3) million loss in the first quarter of our fiscal year 2024
|
|
• |
Adjusted EBITDA of $14.0 million as compared to $6.8 million adjusted EBITDA in the first quarter of our fiscal year 20243
|
|
• |
Cash and cash equivalents of $90.3 million as of December 31, 2023 and no debt facilities4
|
|
• |
Continued expansion from 5.6 EH/s to 10 EH/s:
|
|
o |
1.4 EH/s Bitmain S21 miners and 2.9 EH/s Bitmain T21 miners purchased5
|
|
o |
Operating capacity increased to 6.2 EH/s (as of February 6, 2024)
|
|
• |
Secured pathway to 20 EH/s in 2024 (January 2024):
|
|
o |
1 EH/s of Bitmain T21 miners purchased5
|
|
o |
9 EH/s of Bitmain T21 miner purchase options5
|
• |
Cloud services contract signed with AI company, Poolside AI SAS (February 2024)
|
• |
Tripled cloud services business to 816 NVIDIA H100 GPUs via an additional purchase of 568 NVIDIA H100 GPUs which is expected to be installed in Q2 2024 (February 2024)
|
• |
Announced 1,400MW data center development site in West Texas, with $4.7m initial connection deposit paid and an expected in-service date in late 2026
|
• |
$146.0 million cash and cash equivalents as of February 9, 20244,6
|
• |
Rebrand from Iris Energy to IREN
|
Time & Date:
|
5:00 p.m. USA Eastern Time, Thursday, February 15, 2024
|
||
9:00 a.m. Australian Eastern Daylight Time, Friday, February 16, 2024
|
|||
Participant
|
Registration Link
|
||
Live Webcast
|
Use this link
|
||
Phone Dial-In with Live Q&A
|
Use this link
|
Adjusted EBITDA Reconciliation1
(USD$m)
|
3 months ended
Dec 31, 2023
|
3 months ended
Sep 30, 2023
|
Bitcoin mining revenue
|
42.0
|
34.4
|
Other income
|
0.5
|
-
|
Electricity costs2
|
(16.7)
|
(19.4)
|
Realized gain on financial asset2
|
0.1
|
3.0
|
Other costs
|
(11.9)
|
(11.4)
|
Adjusted EBITDA
|
14.0
|
6.7
|
Adjusted EBITDA Margin
|
33%
|
19%
|
Reconciliation to consolidated statement of profit or loss
|
||
Add/(deduct):
|
||
Foreign exchange loss
|
(4.7)
|
2.2
|
Non-cash share-based payments expense – $75 exercise price options
|
(3.1)
|
(3.0)
|
Non-cash share-based payments expense
|
(2.9)
|
(2.8)
|
Reversal of impairment of assets
|
0.1
|
-
|
Unrealized loss on financial asset3
|
(0.3)
|
-
|
Other expense items4
|
(2.6)
|
(0.6)
|
EBITDA
|
0.6
|
2.5
|
Other finance expense
|
-
|
(0.1)
|
Interest income
|
0.7
|
0.7
|
Depreciation
|
(7.6)
|
(7.6)
|
Loss before income tax (expense)/benefit
|
(6.3)
|
(4.5)
|
Income tax (expense)/benefit
|
1.1
|
(0.8)
|
Loss after income tax (expense)/benefit
|
(5.2)
|
(5.3)
|
|
1) |
For further detail, see our unaudited interim financial statements for the half-year ended December 31, 2023, included in our Form 6-K filed with the SEC on February 15, 2024.
|
|
2) |
Electricity costs net of realized gain on financial asset was $(16.6)m in 2Q FY24 and $(16.4)m in 1Q FY24. Realized gain on financial asset represents unaudited power credits (primarily driven by voluntary
curtailment) earned under hedge contracts.
|
|
3) |
Unrealized loss on financial asset represents the change in the fair value of the financial asset recorded in relation to electricity purchased for future usage periods.
|
|
4) |
Other expense items include one-off professional fees including legal fees.
|
Jon Snowball
|
Danielle Ghigliera
|
Domestique
|
Aircover Communications
|
+61 477 946 068
|
+1 510 333 2707
|
Iris Energy Limited
|
|
Contents
|
|
31 December 2023
|
Unaudited interim consolidated statements of profit or loss and other comprehensive income
|
2
|
Unaudited interim consolidated statements of financial position
|
3
|
Unaudited interim consolidated statements of changes in equity
|
4
|
Unaudited interim consolidated statements of cash flows
|
5
|
Notes to the unaudited interim consolidated financial statements
|
6
|
Iris Energy Limited
|
|
Unaudited interim consolidated statements of profit or loss and other comprehensive income
|
|
For the period ended 31 December 2023
|
Note
|
Three
months
ended 31
Dec 2023
|
Three
months
ended 31
Dec 2022
|
Six months
ended 31
Dec 2023
|
Six months
ended 31
Dec 2022
|
||||||||||||||||
$'000
|
$'000
|
$'000
|
$'000
|
|||||||||||||||||
|
||||||||||||||||||||
Revenue
|
||||||||||||||||||||
Bitcoin mining revenue
|
42,047
|
13,755
|
76,444
|
29,967
|
||||||||||||||||
Other income
|
3 |
527
|
- |
527
|
- |
|||||||||||||||
Total revenue |
42,574 | 13,755 | 76,971 | 29,967 | ||||||||||||||||
Expenses
|
||||||||||||||||||||
Depreciation
|
10 |
(7,558
|
)
|
(11,544
|
)
|
(15,177
|
)
|
(18,996
|
)
|
|||||||||||
Electricity charges
|
(16,746
|
)
|
(7,362
|
)
|
(36,111
|
)
|
(13,937
|
)
|
||||||||||||
Realized gain on financial asset
|
7 | 101 | - | 3,119 | - | |||||||||||||||
Employee benefits expense
|
(4,334
|
)
|
(4,064
|
)
|
(8,511
|
)
|
(8,662
|
)
|
||||||||||||
Share-based payments expense
|
17
|
(5,966
|
)
|
(3,152
|
)
|
(11,805
|
)
|
(6,770
|
)
|
|||||||||||
Impairment of assets
|
|
-
|
(105,172
|
)
|
-
|
(105,172
|
)
|
|||||||||||||
Reversal of impairment of assets |
10 |
108 | - |
108 | - | |||||||||||||||
Professional fees
|
(2,322
|
)
|
(1,747
|
)
|
(3,932
|
)
|
(3,040
|
)
|
||||||||||||
Other operating expenses
|
4
|
(7,825
|
)
|
(3,624
|
)
|
(14,056
|
)
|
(7,240
|
)
|
|||||||||||
Gain/(loss) on sale of assets |
5 | (5,137 | ) | 16 | (5,137 | ) | ||||||||||||||
Unrealized loss on financial asset |
7 | (258 | ) | - | (258 | ) | - | |||||||||||||
Operating profit/(loss)
|
(2,221
|
)
|
(128,047
|
)
|
(9,636
|
)
|
(138,987
|
)
|
||||||||||||
Finance expense
|
|
(30
|
)
|
(10,350
|
)
|
(64
|
)
|
(13,915
|
)
|
|||||||||||
Interest income
|
665
|
257
|
1,378
|
214
|
||||||||||||||||
Foreign exchange loss
|
(4,707
|
)
|
(6,225
|
)
|
(2,449
|
)
|
(7,176
|
)
|
||||||||||||
Loss before income tax (expense)/benefit
|
(6,293
|
)
|
(144,365
|
)
|
(10,771
|
)
|
(159,864
|
)
|
||||||||||||
Income tax (expense)/benefit
|
|
1,065
|
|
|
|
411
|
244
|
(2,030
|
)
|
|||||||||||
Loss after income tax (expense)/benefit for the period
|
(5,228
|
)
|
(143,954
|
)
|
(10,527
|
)
|
(161,894
|
)
|
||||||||||||
Other comprehensive income/(loss)
|
||||||||||||||||||||
Items that may be reclassified subsequently to profit or loss
|
||||||||||||||||||||
Foreign currency translation
|
7,584
|
14,112
|
2,002
|
(12,115
|
)
|
|||||||||||||||
Other comprehensive income/(loss) for the period, net of tax
|
7,584
|
14,112
|
2,002
|
(12,115
|
)
|
|||||||||||||||
Total comprehensive income/(loss) for the period
|
2,356
|
|
|
|
(129,842
|
)
|
(8,525
|
)
|
(174,009
|
)
|
||||||||||
Cents
|
Cents
|
Cents
|
Cents
|
|||||||||||||||||
Basic earnings per share
|
14
|
(7.20
|
)
|
(271.46
|
)
|
(15.02
|
)
|
(305.29
|
)
|
|||||||||||
Diluted earnings per share
|
14
|
(7.20
|
)
|
(271.46
|
)
|
(15.02
|
)
|
(305.29
|
)
|
Iris Energy Limited
|
|
Unaudited interim consolidated statements of financial position
|
|
As at 31 December 2023
|
Note
|
31 Dec 2023
|
30 June 2023
|
||||||||||
$'000
|
$'000
|
|||||||||||
Assets
|
||||||||||||
Current assets
|
||||||||||||
Cash and cash equivalents
|
5
|
90,307
|
68,894
|
|||||||||
Other receivables
|
6
|
5,689
|
6,543
|
|||||||||
Financial assets at fair value through profit or loss
|
7 | 1,280 | - | |||||||||
Prepayments and other assets
|
9 |
11,910
|
13,793
|
|||||||||
Total current assets
|
109,186
|
89,230
|
||||||||||
Non-current assets
|
||||||||||||
Property, plant and equipment
|
10
|
264,182
|
241,102
|
|||||||||
Right-of-use assets
|
|
1,269
|
1,374
|
|||||||||
Deferred tax assets
|
1,240
|
8
|
||||||||||
Computer hardware prepayments
|
8
|
30,555
|
68
|
|||||||||
Other assets
|
370
|
292
|
||||||||||
Prepayments and other assets
|
9 | 10,365 |
|
- | ||||||||
Total non-current assets
|
307,981
|
242,844
|
||||||||||
Total assets
|
417,167
|
332,074
|
||||||||||
Liabilities
|
||||||||||||
Current liabilities
|
||||||||||||
Trade and other payables
|
17,503
|
16,644
|
||||||||||
Lease liabilities
|
11 | 209 | 192 | |||||||||
Income tax
|
680
|
32
|
||||||||||
Employee benefits
|
3,561
|
961
|
||||||||||
Provisions
|
12
|
10,390
|
6,172
|
|||||||||
Total current liabilities
|
32,343
|
24,001
|
||||||||||
Non-current liabilities
|
||||||||||||
Lease liabilities
|
11 | 1,150 | 1,256 | |||||||||
Deferred tax liabilities
|
1,719
|
1,365
|
||||||||||
Employee benefits
|
107 | 91 | ||||||||||
Total non-current liabilities
|
2,976
|
2,712
|
||||||||||
Total liabilities
|
35,319
|
26,713
|
||||||||||
Net assets |
381,848 | 305,361 | ||||||||||
Equity
|
||||||||||||
Issued capital
|
13 |
1,038,846
|
965,857
|
|||||||||
Reserves
|
7,805
|
(6,220
|
)
|
|||||||||
Accumulated losses
|
(664,803
|
)
|
(654,276
|
)
|
||||||||
Total equity
|
381,848
|
305,361
|
Iris Energy Limited
|
|
Unaudited interim consolidated statements of changes in equity
|
|
For the period ended 31 December 2023
|
Issued
|
Accumulated
|
|
||||||||||||||
capital
|
Reserves
|
losses
|
Total equity
|
|||||||||||||
$'000
|
$'000
|
$'000
|
$'000
|
|||||||||||||
Balance at 1 July 2022
|
926,581
|
(6,814
|
)
|
(482,405
|
)
|
437,362
|
||||||||||
Loss after income tax (expense)/benefit for the period
|
-
|
-
|
(161,894
|
)
|
(161,894
|
)
|
||||||||||
Other comprehensive loss for the period, net of tax
|
-
|
(12,115
|
)
|
-
|
(12,115
|
)
|
||||||||||
Total comprehensive loss for the period
|
-
|
(12,115
|
)
|
(161,894
|
)
|
(174,009
|
)
|
|||||||||
Transactions with owners in their capacity as owners:
|
||||||||||||||||
Share-based payments
|
-
|
6,770
|
-
|
6,770
|
||||||||||||
Balance at 31 December 2022
|
926,581
|
(12,159
|
)
|
(644,299
|
)
|
270,123
|
Issued
|
Accumulated | |||||||||||||||
capital
|
Reserves
|
losses
|
Total equity | |||||||||||||
$'000
|
$'000
|
$'000
|
$'000
|
|||||||||||||
Balance at 1 July 2023
|
965,857
|
(6,220
|
)
|
(654,276
|
)
|
305,361
|
||||||||||
Loss after income tax expense for the period
|
-
|
-
|
(10,527
|
)
|
(10,527
|
)
|
||||||||||
Other comprehensive loss for the period, net of tax
|
-
|
2,002
|
-
|
2,002
|
||||||||||||
Total comprehensive loss for the period
|
-
|
2,002
|
(10,527
|
)
|
(8,525
|
)
|
||||||||||
Transactions with owners in their capacity as owners:
|
||||||||||||||||
Issue of ordinary shares (note 13) | 75,672 | - | - | 75,672 | ||||||||||||
Capital raise costs | (2,801 | ) | - | - | (2,801 | ) | ||||||||||
Share-based payments
|
118
|
|
12,023
|
-
|
12,141
|
|
||||||||||
Balance at 31 December 2023
|
1,038,846
|
7,805
|
(664,803
|
)
|
381,848
|
Iris Energy Limited
|
|
Unaudited interim consolidated statements of cash flows | |
For the period ended 31 December 2023
|
Note |
Six months
ended 31
Dec 2023
|
Six months
ended 31
Dec 2022
|
||||||||||
$'000
|
$'000
|
|||||||||||
Cash flows from operating activities
|
||||||||||||
Receipts from disposal of Bitcoin mined
|
75,680
|
29,945
|
||||||||||
Payments for electricity, suppliers and employees (inclusive of GST)
|
(55,906
|
)
|
(32,318
|
)
|
||||||||
|
|
|||||||||||
Interest received
|
1,520
|
254
|
||||||||||
Interest paid
|
(48
|
)
|
(4,144
|
)
|
||||||||
Net cash from/(used in) operating activities
|
21,246
|
(6,263
|
)
|
|||||||||
Cash flows from investing activities
|
||||||||||||
Payments for property, plant and equipment net of computer hardware prepayments
|
10 |
(31,389
|
)
|
(54,653
|
)
|
|||||||
Payments for computer hardware prepayments
|
8 |
(32,626
|
)
|
(10,003
|
)
|
|||||||
Repayments of loan proceeds
|
-
|
2,244
|
||||||||||
Prepayments and deposits
|
(10,243
|
)
|
(4,919
|
)
|
||||||||
Proceeds from disposal of property, plant and equipment
|
-
|
16,616
|
||||||||||
Net cash used in investing activities
|
(74,258
|
)
|
(50,715
|
)
|
||||||||
Cash flows from financing activities
|
||||||||||||
Capital raising costs
|
13 |
(747
|
)
|
(214
|
)
|
|||||||
Repayment of borrowings
|
-
|
(9,432
|
)
|
|||||||||
Capital raising receipts |
74,994 | - | ||||||||||
Payment of borrowing transaction costs
|
-
|
(200
|
)
|
|||||||||
Repayment of lease liabilities
|
(133
|
)
|
(108
|
)
|
||||||||
Net cash from/(used in) financing activities
|
74,114
|
(9,954
|
)
|
|||||||||
Net increase/(decrease) in cash and cash equivalents
|
21,102
|
(66,932
|
)
|
|||||||||
Cash and cash equivalents at the beginning of the period
|
68,894
|
109,970
|
||||||||||
Effects of exchange rate changes on cash and cash equivalents
|
311
|
(2,377
|
)
|
|||||||||
Cash and cash equivalents at the end of the period
|
90,307
|
40,661
|
Iris Energy Limited
|
|
Notes to the unaudited interim consolidated financial statements
|
|
31 December 2023
|
Registered office
|
Principal place of business
|
c/o Pitcher Partners
|
Level 12, 44 Market Street
|
Level 13, 664 Collins Street
|
Sydney NSW 2000
|
Docklands VIC 3008
|
Australia
|
Australia
|
Iris Energy Limited
|
|
Notes to the unaudited interim consolidated financial statements
|
|
31 December 2023
|
● |
Step 1: Identify the contract with a customer;
|
● |
Step 2: Identify the performance obligations in the contract;
|
● |
Step 3: Determine the transaction price, which is the total consideration provided by the customer;
|
● | Step 4: Allocate the transaction price among the performance obligations in the contract based on their relative fair values; and |
● |
Step 5: Recognize revenue when (or as) the Group satisfies a performance obligation.
|
Iris Energy Limited
|
|
Notes to the unaudited interim consolidated financial statements
|
|
31 December 2023
|
● |
A base case scenario assuming recent Bitcoin prices and global hashrate, with a reduction in global hashrate following the halving event expected in Q4 FY2024;
|
● |
Three operational sites in British Columbia, Canada with installed nameplate capacity of 160MW; 80MW Mackenzie (BC, Canada), 50MW Prince
George (BC, Canada), and 30MW Canal Flats (BC, Canada).
|
● |
A fourth operational site at Childress, Texas with initial installed nameplate capacity of 20MW incrementally increasing to 100 MW by 30
June 2024.
|
Iris Energy Limited
|
|
Notes to the unaudited interim consolidated financial statements
|
|
31 December 2023
|
Three
months
ended 31
Dec 2023
|
Three
months
ended 31
Dec 2022
|
Six months
ended 31
Dec 2023
|
Six months
ended 31
Dec 2022
|
|||||||||||||
|
$’000 |
|
$’000 |
|
$’000
|
|
$’000
|
|||||||||
Other income | 527 | - |
527
|
-
|
Three
months
ended 31
Dec 2023
|
Three
months
ended 31
Dec 2022
|
Six months
ended 31
Dec 2023
|
Six months
ended 31
Dec 2022
|
|||||||||||||
$'000
|
$'000
|
$'000
|
$'000
|
|||||||||||||
Insurance
|
1,447
|
1,437
|
3,099
|
3,392
|
||||||||||||
Sponsorship and marketing
|
401
|
99
|
694
|
110
|
||||||||||||
Short term office and equipment rental
|
92
|
54
|
203
|
155
|
||||||||||||
Site expenses
|
1,511
|
889
|
3,068
|
1,377
|
||||||||||||
Charitable donations
|
91
|
85
|
233
|
149
|
||||||||||||
Filing fees
|
19
|
19
|
38
|
39
|
||||||||||||
Site identification costs
|
-
|
-
|
-
|
15
|
||||||||||||
Other expenses
|
787
|
506
|
1,336
|
976
|
||||||||||||
Non-refundable sales tax (See Note 12)
|
1,372
|
535
|
2,966
|
1,027
|
||||||||||||
Non-refundable
provincial sales tax
|
308 | - | 622 | - | ||||||||||||
Legal expenses
|
1,797 | - | 1,797 | - | ||||||||||||
Total other operating expenses
|
7,825
|
3,624
|
14,056
|
7,240
|
31 Dec 2023
|
30 Jun 2023
|
|||||||
$'000
|
$'000
|
|||||||
Current assets
|
||||||||
Cash at bank
|
90,307
|
38,657
|
||||||
Cash on deposit |
- | 30,237 | ||||||
Total cash and cash equivalents
|
90,307 | 68,894 |
Iris Energy Limited
|
|
Notes to the unaudited interim consolidated financial statements
|
|
31 December 20223
|
31 Dec 2023
|
30 Jun 2023
|
|||||||
$'000
|
$'000
|
|||||||
Current assets
|
||||||||
Share issuance proceeds
|
-
|
1,581
|
||||||
Trade and other receivables
|
635
|
97
|
||||||
Provincial sales tax receivable
|
-
|
122
|
||||||
Goods and services tax receivable
|
5,054
|
4,743
|
||||||
Total other receivables |
5,689
|
6,543
|
31 Dec 2023
|
30 Jun 2023
|
|||||||
$'000
|
$'000
|
|||||||
Current assets
|
||||||||
Electricity financial asset
|
1,280
|
-
|
||||||
Reconciliation
|
||||||||
Reconciliation of the fair values at the beginning and end of the current and previous financial period are set out below:
|
||||||||
Opening fair value
|
-
|
-
|
||||||
Additions
|
1,538
|
-
|
||||||
Revaluation decrements (unrealized loss)
|
(258
|
)
|
-
|
|||||
Closing fair value
|
1,280
|
-
|
31 Dec 2023
|
30 Jun 2023
|
|||||||
$'000
|
$'000
|
|||||||
Non-current assets
|
||||||||
Mining hardware prepayments
|
22,264
|
68
|
||||||
High-performance computing hardware prepayments
|
8,291
|
|
|
|
-
|
|||
Total computer hardware prepayments | 30,555 |
68
|
Iris Energy Limited
|
|
Notes to the unaudited interim consolidated financial statements
|
|
31 December 2023
|
31 Dec 2023
|
30 Jun 2023
|
|||||||
$'000
|
$'000
|
|||||||
Current assets
|
||||||||
Security deposits
|
2,905
|
2,420
|
||||||
Prepayments
|
9,005
|
11,373
|
||||||
11,910
|
13,793
|
|||||||
Non-current assets
|
||||||||
Security deposits
|
10,365
|
-
|
||||||
Total prepayments and other assets
|
22,275
|
13,793
|
31 Dec 2023
|
30 Jun 2023
|
|||||||
$'000
|
$'000
|
|||||||
Non-current assets
|
||||||||
Land - at cost
|
1,808
|
1,803
|
||||||
Buildings - at cost
|
155,424
|
153,100
|
||||||
Less: Accumulated depreciation | (8,971 | ) | (5,042 | ) | ||||
146,453
|
148,058
|
|||||||
Plant and equipment - at cost
|
6,025
|
4,145
|
||||||
Less: Accumulated depreciation
|
(1,003
|
)
|
(712
|
)
|
||||
5,022
|
3,433
|
|||||||
HPC hardware – at cost
|
1,389 | - | ||||||
Mining hardware - at cost
|
115,111
|
115,024
|
||||||
Less: Accumulated depreciation
|
(26,853
|
)
|
(15,709
|
)
|
||||
Less: Accumulated impairment
|
(25,935
|
)
|
(25,934
|
)
|
||||
62,323
|
73,381
|
|||||||
Development assets - at cost
|
47,187
|
14,427
|
||||||
Total property, plant and equipment
|
264,182
|
241,102
|
Land
|
Buildings
|
Plant and equipment
|
Mining
hardware
|
HPC
hardware
|
Development assets
|
Total
|
||||||||||||||||||||||
Consolidated
|
$'000
|
$'000
|
$'000
|
$'000
|
$'000 |
$'000
|
$'000
|
|||||||||||||||||||||
Balance at 1 July 2023
|
1,803
|
148,058
|
3,433
|
73,381
|
- |
14,427
|
241,102
|
|||||||||||||||||||||
Additions
|
-
|
880
|
1,880
|
80
|
1,389 |
33,987
|
38,217
|
|||||||||||||||||||||
Disposals |
- | - | (35 | ) | - | - | - | (35 | ) | |||||||||||||||||||
Exchange differences
|
5
|
(26
|
)
|
(49
|
)
|
(113
|
)
|
- |
45
|
(138
|
)
|
|||||||||||||||||
Reversal of impairment |
- | - | - | - | - | 108 | 108 | |||||||||||||||||||||
Transfers in/(out)
|
-
|
1,380
|
-
|
-
|
- |
(1,380
|
)
|
-
|
||||||||||||||||||||
Depreciation expense
|
-
|
(3,839
|
)
|
(207
|
)
|
(11,025
|
)
|
- |
-
|
(15,071
|
)
|
|||||||||||||||||
Balance at 31 December 2023
|
1,808
|
146,453
|
5,022
|
62,323
|
1,389 |
47,187
|
264,182
|
Iris Energy Limited
|
|
Notes to the unaudited interim consolidated financial statements
|
|
31 December 2023
|
31 Dec 2023
|
30 Jun 2023
|
|||||||
$'000
|
$'000
|
|||||||
Current liabilities
|
||||||||
Lease liability
|
209
|
192
|
||||||
Non-current liabilities
|
||||||||
Lease liability
|
1,150
|
1,256
|
||||||
Total lease liabilities
|
1,359
|
1,448
|
31 Dec 2023
|
30 Jun 2023
|
|||||||
$‘000
|
$‘000
|
|||||||
Current liabilities
|
||||||||
Non-refundable sales tax and other provisions
|
10,390
|
6,172
|
Iris Energy Limited
|
|
Notes to the unaudited interim consolidated financial statements
|
|
31 December 2023
|
Consolidated
|
||||||||||||||||
31 Dec 2023
|
30 Jun 2023
|
31 Dec 2023
|
30 Jun 2023
|
|||||||||||||
Shares
|
Shares
|
$'000
|
$'000
|
|||||||||||||
Ordinary shares - fully paid and unrestricted
|
82,419,050
|
64,747,477
|
1,038,846
|
965,857
|
Details
|
Date
|
Shares
|
$'000
|
||||||
Opening balance as at
|
1 July 2023
|
64,747,477
|
965,857
|
||||||
Shares issued under Committed Equity Facility
|
12,887,814
|
51,417
|
|||||||
Shares issued under the ATM Facility
|
4,679,200
|
24,254
|
|||||||
Share based payment - vested shares
|
104,559
|
117
|
|||||||
Capital raise costs
|
-
|
(2,801
|
)
|
||||||
|
|||||||||
Closing balance as at
|
31 December 2023
|
82,419,050
|
1,038,846
|
Three
months
ended 31
Dec 2023
|
Three
months
ended 31
Dec 2022
|
|||||||
$'000
|
$'000
|
|||||||
Loss after income tax
|
(5,228
|
)
|
(143,954
|
)
|
Number
|
Number
|
|||||||
Weighted average number of ordinary shares used in calculating basic earnings per share
|
72,665,044
|
53,028,867
|
||||||
|
||||||||
Weighted average number of ordinary shares used in calculating diluted earnings per share
|
72,665,044
|
53,028,867
|
Cents
|
Cents
|
|||||||
Basic earnings per share
|
(7.20
|
)
|
(271.46
|
)
|
||||
Diluted earnings per share
|
(7.20
|
)
|
(271.46
|
)
|
Six months
ended 31
Dec 2023
|
Six months
ended 31
Dec 2022
|
|||||||
$'000
|
$'000
|
|||||||
Loss after income tax
|
(10,527
|
)
|
(161,894
|
)
|
Number
|
Number
|
|||||||
Weighted average number of ordinary shares used in calculating basic earnings per share
|
70,074,566
|
53,028,867
|
||||||
|
||||||||
Weighted average number of ordinary shares used in calculating diluted earnings per share
|
70,074,566
|
53,028,867
|
Cents
|
Cents
|
|||||||
Basic earnings per share
|
(15.02
|
)
|
(305.29
|
)
|
||||
Diluted earnings per share
|
(15.02
|
)
|
(305.29
|
)
|
Iris Energy Limited
|
|
Notes to the unaudited interim consolidated financial statements
|
|
31 December 2023
|
31 Dec 2023
|
30 Jun 2023
|
|||||||
$'000
|
$'000
|
|||||||
Amounts payable within 12 months of balance date
|
48,215
|
7,481
|
||||||
Amounts payable after 12 months of balance date
|
2,941
|
-
|
||||||
Total Commitments
|
51,156
|
7,481
|
●
|
Employee
Share Plan
|
●
|
2021
Executive Director Liquidity and Price Target Options
|
●
|
Employee
Option Plan
|
●
|
Non-Executive
Director Option Plan
|
●
|
$75 Exercise Price Options
|
●
|
2022
Long-Term Incentive Plan Restricted Stock Units
|
●
|
2023
Long-Term Incentive Plan Restricted Stock Units (see below for the grants made under this 2023 LTIP this period)
|
●
|
3,109,286 RSUs to certain employees and key management personnel (“KMP”) of the Group were issued RSUs of which:
-
33.3% of each individual’s RSU grant are subject to time-based vesting conditions and will vest after one years;
-
33.3% of each individual’s RSU grant are subject to time-based vesting conditions and will vest after two years
-
33.4% of each individual’s RSU grant are subject to performance-based vesting conditions and will vest after three years based on total shareholder return measured against the Nasdaq Small Cap Index (NQUSS) (and continued service over the
vesting period).
|
●
|
120,303 RSUs to certain Non-Executive Directors. These RSUs will vest after one year.
|
Iris Energy Limited
|
|
Notes to the unaudited interim consolidated financial statements
|
|
31 December 2023
|
Number of
options
|
Weighted
average
exercise price
|
Number of
options
|
Weighted
average
exercise price
|
|||||||||||||
31 Dec 2023
|
31 Dec 2023
|
30 Jun 2023
|
30 Jun 2023 | |||||||||||||
Outstanding as at 1 July 2023
|
8,906,839
|
$
|
41.93
|
9,010,547 | $ | 41.67 | ||||||||||
Granted during the period
|
-
|
$
|
0.00
|
- | $ | 0.00 | ||||||||||
Forfeited during the period
|
-
|
$
|
0.00
|
(103,708 | ) | $ | 20.03 | |||||||||
Vested during the period
|
-
|
$ | 0.00 | - | $ | 0.00 | ||||||||||
Outstanding as at 31 December 2023
|
8,906,839
|
$
|
41.93
|
8,906,839 | $ | 41.93 | ||||||||||
Exercisable as at 31 December 2023
|
3,615,546
|
$
|
3.00
|
3,485,302 | $ | 2.97 |
Number of
RSUs
|
||||
31 Dec 2023
|
||||
Outstanding
as at 1 July
|
3,623,867
|
|||
Granted
during the period
|
3,229,589
|
|||
Forfeited
during the period
|
(177,772
|
)
|
||
Vested
during the period
|
(104,559
|
)
|
||
|
||||
Outstanding
as at end of period
|
6,571,125
|
|||
|
||||
Exercisable
as at end of period
|
-
|
Iris Energy Limited
|
|
Notes to the unaudited interim consolidated financial statements
|
|
31 December 2023
|
|
• |
Bitcoin price and foreign currency exchange rate fluctuations;
|
|
• |
our ability to obtain additional capital on commercially reasonable terms and in a timely manner to meet our capital needs and facilitate our expansion plans;
|
|
• |
the terms of any future financing or any refinancing, restructuring or modification to the terms of any future financing, which could require us to comply with onerous covenants or restrictions, and our ability
to service our debt obligations, any of which could restrict our business operations and adversely impact our financial condition, cash flows and results of operations;
|
|
• |
our ability to successfully execute on our growth strategies and operating plans, including our ability to continue to develop our existing data center sites and its ability to diversify into the market for
high-performance computing (“HPC”) solutions we may offer;
|
|
• |
our limited experience with respect to new markets we have entered or may seek to enter, including the market for HPC solutions;
|
|
• |
expectations with respect to the ongoing profitability, viability, operability, security, popularity and public perceptions of the Bitcoin network;
|
|
• |
expectations with respect to the profitability, viability, operability, security, popularity and public perceptions of any HPC solutions we offer;
|
|
• |
our ability to secure and retain customers on commercially reasonable terms or at all, particularly as it relates to our strategy to expand into HPC solutions;
|
|
• |
our ability to manage counterparty risk (including credit risk) associated with any current or future customers and other counterparties;
|
|
• |
our ability to secure renewable energy, renewable energy certificates, power capacity, facilities and sites on commercially reasonable terms or at all;
|
|
• |
the risk that any current or future customers or counterparties may terminate, default on or underperform their contractual obligations;
|
|
• |
Bitcoin global hashrate fluctuations;
|
|
• |
delays associated with, or failure to obtain or complete, permitting approvals, grid connections and other development activities customary for greenfield or brownfield infrastructure projects;
|
|
• |
our reliance on power and utilities providers, third party mining pools, exchanges, banks, insurance providers and our ability to maintain relationships with such parties;
|
|
• |
expectations regarding availability and pricing of electricity;
|
|
• |
our participation and ability to successfully participate in demand response products and services and other load management programs run, operated or offered by electricity network operators, regulators or
electricity market operators;
|
|
• |
the availability, reliability and/or cost of electricity supply, hardware and electrical and data center infrastructure, including with respect to any electricity outages and any laws and regulations that may
restrict the electricity supply available to us;
|
|
• |
any variance between the actual operating performance of our hardware achieved compared to the nameplate performance including hashrate;
|
|
• |
our ability to curtail our electricity consumption and/or monetize electricity depending on market conditions, including changes in Bitcoin mining economics and prevailing electricity prices;
|
|
• |
actions undertaken by electricity network and market operators, regulators, governments or communities in the regions in which we operate;
|
|
• |
the availability, suitability, reliability and cost of internet connections at our facilities;
|
|
• |
our ability to secure additional hardware, including hardware for Bitcoin mining and HPC solutions we may offer, on commercially reasonable terms or at all, and any delays or reductions in the supply of such
hardware or increases in the cost of procuring such hardware;
|
|
• |
expectations with respect to the useful life and obsolescence of hardware (including hardware for Bitcoin mining as well as hardware for other applications, including HPC solutions we may offer);
|
|
• |
delays, increases in costs or reductions in the supply of equipment used in our operations;
|
|
• |
our ability to operate in an evolving regulatory environment;
|
|
• |
our ability to successfully operate and maintain our property and infrastructure;
|
|
• |
reliability and performance of our infrastructure compared to expectations;
|
|
• |
malicious attacks on our property, infrastructure or IT systems;
|
|
• |
our ability to maintain in good standing the operating and other permits and licenses required for our operations and business;
|
|
• |
our ability to obtain, maintain, protect and enforce our intellectual property rights and confidential information;
|
|
• |
any intellectual property infringement and product liability claims;
|
|
• |
whether the secular trends we expect to drive growth in our business materialize to the degree we expect them to, or at all;
|
|
• |
the occurrence of any environmental, health and safety incidents at our sites, and any material costs relating to environmental, health and safety requirements or liabilities;
|
|
• |
damage to our property and infrastructure and the risk that any insurance we maintain may not fully cover all potential exposures;
|
|
• |
ongoing proceedings relating to the default by two of the Company’s wholly-owned special purpose vehicles under limited recourse equipment financing facilities;
|
|
• |
ongoing securities litigation relating in part to the default;
|
|
• |
and any future litigation, claims and/or regulatory investigations, and the costs, expenses, use of resources, diversion of management time and efforts, liability and damages that may result therefrom;
|
|
• |
our failure to comply with any laws including the anti-corruption laws of the United States and various international jurisdictions;
|
|
• |
any failure of our compliance and risk management methods;
|
|
• |
any laws, regulations and ethical standards that may relate to our business, including those that relate to Bitcoin and the Bitcoin mining industry and those that relate to any other solutions we may offer (such
as HPC solutions), including regulations related to data privacy, cybersecurity and the storage, use or processing of information;
|
|
• |
our ability to attract, motivate and retain senior management and qualified employees;
|
|
• |
increased risks to our global operations including, but not limited to, political instability, acts of terrorism, theft and vandalism, cyberattacks and other cybersecurity incidents and unexpected regulatory and
economic sanctions changes, among other things;
|
|
• |
climate change, severe weather conditions and natural and man-made disasters that may materially adversely affect our business, financial condition and results of operations;
|
|
• |
the ongoing effects of COVID-19 or any other outbreak of an infectious disease and any governmental or industry measures taken in response;
|
|
• |
our ability to remain competitive in dynamic and rapidly evolving industries;
|
|
• |
damage to our brand and reputation;
|
|
• |
expectations relating to Environmental, Social and Governance issues or reporting;
|
|
• |
the costs of being a public company;
|
|
• |
and other important factors discussed under “Item 3.D. Key Information—Risk Factors” in our Annual Report, as such factors may be updated from time to time in its other filings with the SEC, accessible on the
SEC’s website at www.sec.gov and the Investor Relations section of the Company’s website at https://investors.irisenergy.co.
|
Three Months
Ended
December 31,
2023
|
Three Months
Ended
December 31,
2022
|
Six Months
Ended
December 31,
2023
|
Six Months
Ended
December 31,
2022
|
|||||||||||||
($ thousands)
|
($ thousands)
|
($ thousands)
|
($ thousands)
|
|||||||||||||
Loss after income tax (expense)/benefit
|
(5,228
|
)
|
(143,954
|
)
|
(10,527
|
)
|
(161,894
|
)
|
||||||||
Add/(deduct) the following:
|
||||||||||||||||
Other finance expense/(benefit)
|
30
|
10,350
|
64
|
13,915
|
||||||||||||
Interest income
|
(665
|
)
|
(257
|
)
|
(1,378
|
)
|
(214
|
)
|
||||||||
Depreciation
|
7,558
|
11,544
|
15,177
|
18,996
|
||||||||||||
Income tax expense/(benefit)
|
(1,065
|
)
|
(411
|
)
|
(244
|
)
|
2,030
|
|||||||||
EBITDA
|
630
|
(122,728
|
)
|
3,092
|
(127,167
|
)
|
||||||||||
|
||||||||||||||||
Bitcoin Mining Revenue
|
42,047
|
13,755
|
76,444
|
29,967
|
||||||||||||
|
||||||||||||||||
Loss after income tax benefit/ (expense) margin(1)
|
(12
|
%)
|
(1,047
|
%)
|
(14
|
%)
|
(540
|
%)
|
||||||||
|
||||||||||||||||
EBITDA margin(2)
|
2
|
%
|
(892
|
%)
|
4
|
%
|
(424
|
%)
|
(1) |
Loss after income tax (expense)/benefit margin is calculated as Loss after income tax (expense)/benefit divided by Bitcoin Mining Revenue.
|
(2) |
EBITDA margin is calculated as EBITDA divided by Bitcoin Mining Revenue.
|
Three Months
Ended
December 31,
2023
|
Three Months
Ended
December 31,
2022
|
Six Months
Ended
December 31,
2023
|
Six Months
Ended
December 31,
2022
|
|||||||||||||
($ thousands)
|
($ thousands)
|
($ thousands)
|
($ thousands)
|
|||||||||||||
Loss after income tax (expense)/benefit
|
(5,228
|
)
|
(143,954
|
)
|
(10,527
|
)
|
(161,894
|
)
|
||||||||
Add/(deduct) the following:
|
||||||||||||||||
Other finance expense
|
30
|
10,350
|
64
|
13,915
|
||||||||||||
Interest income
|
(665
|
)
|
(257
|
)
|
(1,378
|
)
|
(214
|
)
|
||||||||
Depreciation
|
7,558
|
11,544
|
15,177
|
18,996
|
||||||||||||
Income tax expense/(benefit)
|
(1,065
|
)
|
(411
|
)
|
(244
|
)
|
2,030
|
|||||||||
EBITDA
|
630
|
(122,728
|
)
|
3,092
|
(127,167
|
)
|
||||||||||
Bitcoin Mining Revenue
|
42,047
|
13,755
|
76,444
|
29,967
|
||||||||||||
Loss after income tax (expense)/benefit margin(1)
|
(12
|
%)
|
(1,047
|
%)
|
(14
|
%)
|
(540
|
%)
|
||||||||
EBITDA margin(2)
|
2
|
%
|
(892
|
%)
|
4
|
%
|
(424
|
%)
|
||||||||
Add/(deduct) the following:
|
||||||||||||||||
Impairment of assets(3)
|
-
|
105,172
|
-
|
105,172
|
||||||||||||
Reversal of impairment of assets(4)
|
(108
|
)
|
-
|
(108
|
)
|
-
|
||||||||||
Share-based payment expense – $75 exercise price options
|
3,030
|
3,036
|
5,895
|
5,920
|
||||||||||||
Share-based payment expense – other
|
2,936
|
116
|
5,910
|
850
|
||||||||||||
Foreign exchange (gain)/loss
|
4,707
|
6,225
|
2,449
|
7,176
|
||||||||||||
Other expense items(5)
|
2,455
|
144
|
3,186
|
1,689
|
||||||||||||
Unrealized (gain)/loss on financial asset
|
258
|
-
|
258
|
-
|
||||||||||||
Adjusted EBITDA
|
13,908
|
(8,035
|
)
|
20,682
|
(6,360
|
)
|
||||||||||
Adjusted EBITDA margin(6)
|
33
|
%
|
(58
|
%)
|
27
|
%
|
(21
|
%)
|
(1) |
Loss after income tax (expense)/benefit margin is calculated as Loss after income tax (expense)/benefit divided by Bitcoin Mining Revenue.
|
(2) |
EBITDA margin is calculated as EBITDA divided by Bitcoin Mining Revenue.
|
(3) |
Impairment of assets for the six months ended December 31, 2023 and December 31, 2022 was nil and $105.2 million, respectfully. See “—Components of our Results of Operations—Expenses—Impairment of assets” for
further information. Impairment expense for the period ended December 31, 2022 includes $15.2 million previously reported as loss on other receivables.
|
(4) |
Reversal of impairment of assets for the six months ended December 31, 2023 and December 31, 2022 was $(0.1) million and nil, respectfully. See “—Components of our Results of Operations—Expenses—Impairment of
assets” for further information.
|
(5) |
Other expense items include professional fees incurred in relation to the securities class action, and one-off additional remuneration.
|
(6) |
Adjusted EBITDA margin is calculated as Adjusted EBITDA divided by Bitcoin Mining Revenue.
|
Three Months
Ended December
31, 2023
|
Three Months
Ended December
31, 2022
|
Six Months
Ended December
31, 2023
|
Six Months
Ended December
31, 2022
|
|||||||||||||
Revenue
|
($ thousands)
|
($ thousands)
|
($ thousands)
|
($ thousands)
|
||||||||||||
Bitcoin mining revenue
|
42,047
|
13,755
|
76,444
|
29,967
|
||||||||||||
Other income
|
527
|
-
|
527
|
-
|
||||||||||||
|
||||||||||||||||
Expenses
|
||||||||||||||||
Depreciation
|
(7,558
|
)
|
(11,544
|
)
|
(15,177
|
)
|
(18,996
|
)
|
||||||||
Electricity charges
|
(16,746
|
)
|
(7,362
|
)
|
(36,111
|
)
|
(13,937
|
)
|
||||||||
Realized gain/(loss) on financial asset
|
101
|
-
|
3,119
|
-
|
||||||||||||
Employee benefits expense
|
(4,334
|
)
|
(4,064
|
)
|
(8,511
|
)
|
(8,662
|
)
|
||||||||
Share-based payments expense
|
(5,966
|
)
|
(3,152
|
)
|
(11,805
|
)
|
(6,770
|
)
|
||||||||
Impairment of assets
|
-
|
(105,172
|
)
|
-
|
(105,172
|
)
|
||||||||||
Reversal of impairment of assets
|
108
|
-
|
108
|
-
|
||||||||||||
Professional fees
|
(2,322
|
)
|
(1,747
|
)
|
(3,932
|
)
|
(3,040
|
)
|
||||||||
Other operating expenses
|
(7,825
|
)
|
(3,624
|
)
|
(14,056
|
)
|
(7,240
|
)
|
||||||||
Gain/(loss) on sale of assets
|
5
|
(5,137
|
)
|
16
|
(5,137
|
)
|
||||||||||
Unrealized gain/(loss) on financial asset
|
(258
|
)
|
-
|
(258
|
)
|
-
|
||||||||||
Profit/(loss) before interest, foreign exchange gain/(loss) and income tax
|
(2,221
|
)
|
(128,047
|
)
|
(9,636
|
)
|
(138,987
|
)
|
||||||||
Finance expense
|
(30
|
)
|
(10,350
|
)
|
(64
|
)
|
(13,915
|
)
|
||||||||
Interest income
|
665
|
257
|
1,378
|
214
|
||||||||||||
Foreign exchange gain/(loss)
|
(4,707
|
)
|
(6,225
|
)
|
(2,449
|
)
|
(7,176
|
)
|
||||||||
Loss before income tax expense
|
(6,293
|
)
|
(144,365
|
)
|
(10,771
|
)
|
(159,864
|
)
|
||||||||
Income tax (expense)/benefit
|
1,065
|
411
|
244
|
(2,030
|
)
|
|||||||||||
Loss after income tax (expense)/benefit
|
(5,228
|
)
|
(143,954
|
)
|
(10,527
|
)
|
(161,894
|
)
|
||||||||
Other comprehensive income/(loss)
|
||||||||||||||||
Items that may be reclassified subsequently to profit or loss:
|
||||||||||||||||
Foreign currency translation
|
7,584
|
14,112
|
2,002
|
(12,115
|
)
|
|||||||||||
Other comprehensive income/(loss), net of tax
|
7,584
|
14,112
|
2,002
|
(12,115
|
)
|
|||||||||||
Total comprehensive income/(loss)
|
2,356
|
(129,842
|
)
|
(8,525
|
)
|
(174,009
|
)
|
|
• |
A base case scenario assuming recent Bitcoin prices and global hashrate, with a reduction in global hashrate following the halving event expected in the fourth fiscal quarter of fiscal year 2024;
|
|
• |
Three operational sites in British Columbia, Canada with installed nameplate capacity of 160MW; 80MW Mackenzie (BC, Canada), 50MW Prince George (BC, Canada), and 30MW Canal Flats (BC, Canada).
|
|
• |
A fourth operational site at Childress, Texas with initial installed nameplate capacity of 20MW incrementally increasing to 100 MW by June 30, 2024.
|
Six Months
Ended
December 31,
2023
|
Six Months
Ended
December 31,
2022
|
|||||||
|
($ thousands)
|
($ thousands)
|
||||||
|
||||||||
Net cash from/(used) in operating activities
|
21,246
|
(6,263
|
)
|
|||||
Net cash used in investing activities
|
(74,258
|
)
|
(50,715
|
)
|
||||
Net cash from financing activities
|
74,114
|
(9,954
|
)
|
|||||
Net cash and cash equivalents increase/(decrease)
|
21,102
|
(66,932
|
)
|
|||||
Cash and cash equivalents at the beginning of the period
|
68,894
|
109,970
|
||||||
Effects of exchange rate changes on cash and cash equivalents
|
311
|
(2,377
|
)
|
|||||
Net cash and cash equivalents at the end of the period
|
90,307
|
40,661
|
|
1 year or
less
|
Between 1
and 2
years
|
Between 2
and 5 years
|
Over 5
years
|
Total |
|||||||||||||||
|
($ thousands)
|
|||||||||||||||||||
Non-interest bearing
|
||||||||||||||||||||
Trade and other payables
|
17,503
|
-
|
-
|
-
|
17,503
|
|||||||||||||||
Lease liability
|
341
|
247
|
406
|
2,220
|
3,214
|
|||||||||||||||
Total
|
17,844
|
247
|
406
|
2,220
|
20,717
|